Moderating Effect of Audit Committee Expertise on the Relationship between Auditor Independence and Audit Quality of Listed Companies in Nigeria

Abstract

This study explores the moderating role of audit committee expertise on the relationship between auditor independence and audit quality in Nigerian listed companies. Panel data from 114 firms covering 2015–2024 were analyzed using descriptive statistics, correlation, and multiple regression techniques. Findings indicate that audit quality varied moderately across firms, while correlation results revealed a significant positive association between auditor independence and audit quality. Regression analysis confirmed that auditor independence has a strong and positive influence on audit quality, reinforcing its importance in enhancing financial reporting credibility. However, the interaction between auditor independence and audit committee expertise (AUI × ACE) was negative and statistically insignificant, suggesting that audit committee expertise does not alter the effect of auditor independence. The study concludes that while auditor independence remains essential, audit committee expertise provides minimal complementary benefits. Enhanced collaboration and oversight are recommended to strengthen corporate governance practices in Nigeria.